Yen Plummets, Nintendo Soars!

[TheLastStarFighter]

ryuzaki57 said:

TheLastStarFighter said:

The Yen zoomed past 96 per US dollar this weekend.  At the same time, Nintendo shares have seen very significant gains over the last week.  This is great for shareholders, of course, but could also have a major impact on the industry in the coming months.  The 95yen dollar means an extra 18% revenue for Japanese product in America. This effectively means that a WiiU deluxe sold for $350 is now selling for $415 from Nintendo's perspective when we look at their initial projections using an 80yen dollar.  Since the breakeven point for WiiU was between 1 and 2 games, it's fairly safe to say $65 would mean the WiiU is selling at a profit outside of Japan.  This is without even looking at game revenue. So is Nintendo going to drop the price? Bank the money? I would suggest a fall price dop becomes more likely with every drop in the yen.  A 100yen dollar would make the WiiU able to be both cheaper and profitable, if not already. If 3DS sales are strong this year, Nintendo could be printing money.

Sony is benefiting for that too, and Nintendo still has to cope with an operating loss regardless of the exchange rate. Besides, the NFC Pokemon is a spin-off, it can't even remotely be as strong as Pokemon X/Y.